This chapter evaluates the causes, effects, and challenges of the United States (US) -China trade war, particularly in the era of Covid-19covid 19. We examine the complex US claims against China, and how China retaliated. The study uses the Power Transition Theory to explore how the US, a hegemonic power, tried to influence socio-economic development in China, a rising economic power. The article adopts the qualitative method: secondary sources of data, such as academic journals, books, and newspapers were used and the collected data were analysed through thematic data analysis. The interpretation and analysis of the collected data points to the fact that the trade war was mainly caused by US claims against China. However, this trade war led to myriad challenges, such as economic shocks to both countries’ economies and to the globe as a whole. Furthermore, the Phase One Trade Deal between the US and China (which required structural reforms and other changes to China’s economic and trade regime) was greatly affected by the Covid-19 pandemic. The chapter concludes that the tension between the two superpowers influenced global peace and security, and sustainable development in BRICS nations and the developing world, and recommends sustainable peace building strategies between the two countries.